- The Market Traders Association of Nigeria (MATAN) is partnering with the Federal Inland Revenue Service (FIRS) on a VAT collection initiative called VAT DIRECT INITIATIVE (VDI).
- The initiative aims to simplify VAT payment and remittance processes for market traders and the informal sector through a digital platform.
- MATAN members will receive an ID card containing their Tax Identification Number to track VAT accrued from their business activities.
- The implementation of the VAT Direct Initiative is expected to increase VAT revenue generation for all tiers of government.
- The initiative will combat multiple taxations in the marketplace and work with security agencies to address the activities of touts and self-imposed tax collectors.
- The collaboration between FIRS and MATAN signals good intentions for a progressive Nigeria.
- The move is timely as a survey indicates that the informal sector pays VAT but has no record with the appropriate government functionaries.
- MATAN will provide digital ID and VAT trackers to ensure seamless payment of VAT.
- The initiative aims to remedy the issue of VAT funds going into the wrong hands instead of the Federal Government coffers.
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.